Five Fundraising Mistakes We Make with Our Boards

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Too often nonprofit board members shy away from fundraising. When the subject comes up, many trustees suddenly become invisible or silent. Yet it is our responsibility to set up board members in active, satisfying roles that can support the fundraising process.

But we frequently make mistakes that hurt, rather than help, our cause. How do we go wrong when we approach them about helping in fundraising? Here are five common mistakes that cause board members to back off when they should be pitching in.

1.    Asking for money, not building and keeping friends. Many board members are mistaken about fundraising. They think it is “asking for money.”

The actual moment of asking for a gift, however, is only one small step in the long, time-consuming process of building relationships with donors.

Board members don’t realize the myriad activities that go into the fundraising process-identifying potential donors, cultivating and involving them in an organization, and, of course, finding ways to thank donors and foster their long-term relationship with our cause.
They skip directly to the most difficult and awkward part of the fundraising cycle.

If we can get our board members to change their point of view and have them focus first on making friends who then join our organization’s bandwagon as donors-then everyone wins.

We should never allow our good-hearted, well-meaning but nervous board members to get away with equating the entire process of fundraising with the act of soliciting.
2.    Cold or “cool” calls. Cold calls are the worst possible place to use the energy and good will of your kind-hearted board members, because cold calls have the highest rate of failure.

We should never subject our board members to this kind of rejection, which will incline them never to venture out for you again. Preserve their self-esteem and protect them from negative responses if you want their continued help. Why would they keep beating their heads against a wall if they are rarely successful?

Send them on easy calls that will create fun, shared vision, and passion for your organization, calls that will make them happy and give them confidence. Send them out to make friends for your organization and engage the community with their passion.

I work hard to preserve my board members’ good feelings about being involved in fundraising. I nurture their interest, starting them off with simple tasks to encourage them, such as thanking current donors or cultivating someone at an event.
Then, after they develop some confidence, I bring them along on a formal cultivation or solicitation call. I will rarely send a board member out to solicit alone, and only if I think he or she is a carefully prepared, experienced fundraiser.
After one of my Fired Up for Fundraising Board Retreats, a trustee once said to me,

“This was so helpful. Before when someone mentioned fundraising, I immediately imagined cold calls. You have shown me that I can help in fundraising in lots of much easier ways. Fundraising is not necessarily cold calls at all; in fact, good fundraising is everything but cold calls.”

3.   Too many calls at too low a dollar level. If we are going to use board members in solicitations, then it is important to plan carefully the best use of their time in order to make the most of their valuable contacts and limited availability.

I have seen well-meaning but scared volunteers bravely step up to the plate, willing to make annual giving solicitations in person. Then the thankful but overly optimistic staff loads them up with far too many visits to make at one time.

Worse, the calls are for meager amounts of money. It is much better to focus our board members on fewer calls at much higher dollar levels. I believe in asking board members to make only three calls at any one time. Focus on quality, not quantity.

Use your valuable board members carefully where you need them the most, and where they will do the most good.

4.      Emergency fundraising, not long-term relationships. I am all for a sense of urgency when raising funds. But all too often we wait until a crisis to mobilize our board members.

Then the conversation really does become all about money rather than about the great work our organization is doing for community good.

At such times, we ask board members to help pull in money quickly to respond to a budget shortfall or cover some major financial loss.

Again we are setting them up for unpleasant fundraising experiences. In these cases, they will usually create a conversation about “money,” not about a vision for a stronger, healthier community or a better world.

5.   Lack of training, structure, coaching, and support. We often send our trustees out with too little preparation and backup. We tend to forget that they are volunteers.

They are not the pros that we are. Do not make the mistake of assuming that your board members understand fundraising, or how to talk about your organization.

Be sure they have a solid understanding of the underlying philosophy of fundraising-which is developing donors/investors/partners who will stick with your organization for the long run.

They need-and deserve-first-rate support from staff. You will find that board members deeply appreciate this kind of backup.

They need clear goals, clear organizational structure, and inspiration to wake up their passion and keep personal commitment to your organization’s success.

3 Things Fundraisers Can Learn from McDonald’s

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By Derrick Feldmann

You might call it an occasional weakness for fast food. I call it market research for nonprofits.

Well, OK, maybe that’s stretching things a bit. The truth is, I do enjoy the occasional visit to the “Golden Arches.” Usually, I heed the McDonald’s call when I’m on the go – dashing from one meeting to the next, driving across the state or passing through an airport.

What’s interesting about these varied visits (and this is where I claim to be doing important market research) is that every experience is essentially the same. Whether I’m making a quick stop along the highway, killing time between flights in a major metro airport, or grabbing a snack in the mall, I know what to expect, from the fries and shakes to my interaction with employees. Regardless of whether you like McDonald’s, you have to admire the chain’s ability to uphold the standards Ray Kroc created to ensure that your experience is consistent.

Can you say the same about your organization’s fundraising practices? Or do you have a few things to learn from the people at McDonald’s? Consider these basic lessons.

Build a consistent donor experience. At McDonald’s your experience will be consistent. How about your donors’ experiences with your organization? Review the donor experience from first contact to giving and beyond, and work to ensure a consistent experience. Set standards for the experience, and create metrics that allow you to maintain those standards. Donors who receive a consistent and exemplary experience will be motivated to give and engage in your work again.

Create a system for the annual fund to operate effectively. The consistent McDonald’s customer experience is built on a foundation of systems. Every restaurant process and customer interaction is guided by this system. Because most of us don’t have the luxury of fundraising departments with more than 3 or 5 staff members, it’s even more important that we have similar annual fund systems to yield consistent results. Think about it another way: If you left for two weeks, would your current fundraising system continue to generate resources? Or is the system dependent on you at all times? If so, step back and develop a concrete system, one that provides the structure and process required for reliable, consistent experiences. But here’s the thing: This system is not simply about making sure everything stays the same. It’s also about freeing up your time to experiment with new trends, craft new approaches and visit with major donors who might yield larger resources.

Create peak performance indicators for performance and experimentation. The McDonald’s system didn’t simply occur to Ray Kroc on day one and remain the same ever since. On the contrary: It has been the product of a steady and relentless system of experimentation. Think of all the McThises and McThats we’ve seen over the years – some successful and some not. Just as McDonald’s has indicators and clear expectations for how each employee should perform his or her job, the company has created and perfected benchmarks for experimentation. As a fundraiser, you should create similar benchmarks to help you determine whether you are reaching your peak performance. If you’re experimenting with a new fundraising strategy, create at least three indicators for benchmarking results, and develop for your board a clear indicator for measuring new approaches. This will help you assess experiments, change direction as needed and build long-term and ongoing fundraising success.

Oh, yeah: And as you put these three practices to work, consider one other lesson to be learned from McDonald’s: In a crowded marketplace, customers (and donors) have plenty of options. Give them a reliable and consistent experience, and the odds are that they’ll be back again and again.

So, there you have it: Deliver a consistent, high-quality experience. Systemize your fundraising. Create measurements for all performance and experiments. It’s a model that has brought more than 99 billion people to the Golden Arches – don’t you think it could help you build your organization?

5 Things to Do Before You Visit a Major Donor to Request Support

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By Derrick Feldmann

  1. Update yourself on how the donor interacts with the organization. What communication do they subscribe to, gifting history, what articles they have viewed from email newsletters, and what has been their attendance at events?
  2.        Develop a one pager that outlines your conversation into four compartments:a.  Recent Organization Accomplishments and Updatesb.  What is Happening with the Issue and/or Mission (Education, Etc.)c.  The Specific Need for Support Based Upon What is Happening to the Issue
    or Missiond.  How Dollars Will Be Specifically Used
  3.         Create an Impact Booklet – a portfolio of visuals and images donor dollars at work. If donor has supported previously share how their dollars have made a difference.
  4.            Develop a list of three donor opportunities with gift amounts and how the gifts can transform the organization. Example: How will $1,000, $5,000, $10,000 each transform the organization?
  5.         List three contacts that you want to meet and how the major donor could help facilitate introductions.